After BS6 and EVs, Could Flex Fuel Be the Future?

The automobile industry has experienced significant transformations in recent years, particularly in the wake of COVID-19. The shift from BS4 to BS6 fuel standards aims to combat rising pollution levels, leading the industry to move away from diesel and increasingly embrace electric vehicles (EVs). However, the high costs associated with EVs—largely due to the importation of components from countries like China—present a substantial hurdle. In the future, India could potentially manufacture essential parts such as batteries and semiconductors, which may help reduce EV prices.

Several companies, including Ford and Chevrolet, have exited the Indian market, primarily due to their inability to adapt to new technologies, design trends, and declining sales from outdated models. Recently, the industry has adopted BS6 OBD2 technology to lower vehicle emissions, but the rising costs of vehicles have made it challenging for manufacturers to offer budget-friendly options to customers. Moreover, BS6 vehicles face difficulties, as many petrol stations lack pollution-check facilities that comply with the new standards, forcing owners to travel greater distances for necessary checks.

In a positive development, Honda has launched India’s first flex-fuel bike, the CB300F, capable of running on E85 fuel, which consists of 85% ethanol and 15% fuel. Currently, petrol in India contains 10% ethanol, and E20 (20% ethanol) is also available. While all BS6 vehicles are compatible with E20 fuel, widespread adoption of E85 is expected to take more time. As fuel prices become more favorable, an increasing number of consumers are likely to opt for these flex-fuel vehicles, reaping long-term cost benefits.

A significant challenge for E85's success in India is its market penetration. Cost is a crucial factor, as adopting E85 could significantly reduce oil imports, lower vehicle emissions, and boost India’s farming sector since ethanol is derived from agricultural sector.

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